Sunday, November 16, 2014

How to Change Social Security

Reading the article "The Social Security Myth" by Nick Newel the idea of the inadequacy and wastefulness of social security is explored. Nick states that “The SI (Old-Age and Survivors Insurance) program is in no sense a federally-administered “insurance program” under which each worker pays premiums over the years and acquires at retirement an indefeasible right to receive for life a fixed monthly benefit, irrespective of the conditions which Congress has chosen to impose from time to time” which is so counter to what you would have been led to believe Social Security is there for.

A significant reason that Social Security has remained in place and continued to increase in premiums is that a large majority of the political power - the elderly - are the ones voting for policy change. In the instance where they directly benefit from the increase in premiums on the younger generations they have no incentive to change the direction of their votes.

At this point in time looking towards the future and future generations is it feasible to think that we can continue to raise the costs of social security to benefit us once we retire? To me it seems like a economic policy destined for failure in that eventually the premiums will become too large to bear. What changes could be made to reroute the direction Social Security is going in? Is there any hope that changes in policy could make Social Security a worthwhile endeavor?

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